Irvine Housing Blog

Irvine Housing Blog

Link to Irvine Housing Blog

IHB News 10-2-2010

Posted: 02 Oct 2010 03:30 AM PDT

 

 

Irvine Home Address ... 18 DELAWARE Irvine, CA 92620
Resale Home Price ...... $799,000

What a shame we never listened
I told you through the television
And all that went away was the price we paid
People spend a lifetime this way
And that’s how they stay
Oh what a shame.

Words come easy, when they’re true
Words come easy, when they’re true

Robbie Williams -- Shame

realtors Debasing Themselves 

Soylent Green is People emailed me a link to a story Realtor gimmicks and blue light specials reek of desperation. The story links to a site Real Estate Coupons (http://realtycoupons.com/).

Real estate coupons!? Please tell me this is a joke. RealtyCoupons.com says it “allows Real Estate Professionals to dramatically increase their Business and Production by offering Coupons for their Real Estate related business.” This is nothing but a cheesy gimmick aimed at despondent agents who think that lowering themselves to this level is going to procure business. What gets me most is that there are actually agents who buy into this and fork over their time and money. Glancing over the coupons posted by agents, it literally reeks of desperation. We do not need to stoop that low.

One of the more outlandish coupons offered is 50% off all real estate services, valid through 07/2012. It’s an agent firesale! Besides the fact you’ll probably go negative giving away half your earnings after factoring fees, taxes and expenses, you might as well strap a mobile police light atop your car, driving around the neighborhood with a speakerphone blaring “Attention Kmart Shoppers!” Who in their right mind wants to be known as the “Blue Light Special” Agent?

For those agents who are even remotely thinking about creating coupons, make no mistake… No client is ever going to have the following conversation with their friends and family:
“Sue is a great agent! You ought to give her a call”
“Wow, she must be an ethical and knowledgeable expert.”
“No, you silly. She accepts coupons! Here‘s one I clipped out for you. Hurry, though. It expires tomorrow.”

Furthermore, real estate coupons are a dangerous path to go down. One day you’re doling up coupons to drum up business, and pretty soon, you find yourself accepting food stamps for your commission. Have some standards, people! If you continue debasing yourself, you are going to find yourself one day blurting out “Yes, I do!” when a prospect asks you, “Can we pay you on layaway?” Where does it end?!

Who goes to realtycoupons.com to look for coupons anyway? If you have to coupon, at least look less desperate by putting on on your Google Places profile, on Yelp or Groupon. Please!

For the love of Lady Gaga, there is no need resort to these foolish antics. Instead of wasting time and money on real estate coupons (and incidentally demeaning your brand), allocate your resources elsewhere to attract clients. Can I get an Amen!?

IHB News

I bought another house in Las Vegas this week. I wasn't planning on buying another one, but the deal was so good, I couldn't pass it up. I picked up a 3,300 SF house with a 3-car garage in a nice neighborhood for $201,700. It comps for $285,000 to $300,000. It will take a few weeks before I get pictures for this one as it is currently occupied. I should have a post on the first property I purchased this week. It is being photographed Monday, and if I like them, I will put up the MLS listing in Las Vegas and profile the property here.

I spent most of the week getting my systems in place to analyze, acquire, and process these properties. As I go through the process with these first ones I will refine my systems to be prepared to process more. I originally planned to put these systems in place before acquiring any properties, but the deals I spotted were just too good to let pass.

The company I work with in Las Vegas has the ability to find last-second dropped bids. The property I bought for $201,700 was $15,000 under my maximum bid price. Since nobody else had a chance to check out the property, I was the only bidder. Banks are pretty stupid when it comes to late dropped bids. They could have gotten a significantly better price if they had given potential bidders more time to research the properties. I can't say it upsets me to profit from the stupidity of banks.

As I mentioned last week, the window is closing on the investment fund. The first property is being listed next week, and when it closes escrow, the fund is closed for good.

Writer's Corner

I went to Mickey's Not-So-Scary Halloween Party on Friday evening. It was a great family event, and a good time was had by all. I highly recommend it. I want to offer a special thanks to Jamie Griffin who gave me the tickets she was unable to use.

I am a Disney regular. We have season passes, and my son and I go nearly every Sunday morning. We like to arrive just as the park opens and go on his favorite rides before the lines get too long. It is the high point of my week, and my son and I have many fond memories of Disney. Sometimes, we go on Splash Mountain first thing, and if there is no line, we stay on the same log and go over and over again. There are some aspects of Southern California life you can't duplicate in other places.

Housing Bubble News from Patrick.net

Fri Oct 1 2010
Price slide likely to continue as shadow inventory comes to light (chicagotribune.com)
Central Fla. House Prices To Take Major Dive (msnbc.msn.com)
Study Finds Sharp Rise in Mortgages 90-Plus Days Delinquent (nationalmortgageprofessional.com)
Foreclosure postings on million-dollar Dallas houses on the rise (housingwire.com)
Distressed Houses Sell at 26% Discount in U.S. as Supply Swells (bloomberg.com)
More Foreclose Sales Will Drive Down Prices (theatlantic.com)
43% of CA. houses sold in foreclosure (mortgage.ocregister.com)
More than 1 in 3 South Florida house sales are foreclosures (miamiherald.com)
When Foreclosure is a Good Option (money.usnews.com)
Ohio Foreclosures and How They Work (stockmarketsreview.com)
Sale prices lowest on bank-owned houses (pe.com)
More Hawaii houseowners doing short sales to avoid foreclosure (staradvertiser.com)
Kaboom! Referral of Chase to federal prosecutor (4closurefraud.org)
J.P. Morgan Chase to freeze foreclosures over flawed paperwork (washingtonpost.com)
Should Treasury Help Investors Become Landlords? (blogs.wsj.com)
You're going to be paying your neighbor's home-equity loan (dailybail.com)
Highest property taxes in the country (money.cnn.com)
Patrick.net Now Has Health Insurance Forum (patrick.net)

Is it time to be your own landlord yet?


Thu Sep 30 2010
NODs and NOTS continue to stunt California real estate "recovery" (firsttuesdayjournal.com)
Forth Worth Area foreclosures may reach all-time record in 2010 (fwbusinesspress.com)
Census snapshot of S. Florida: Poverty up, wealth down (miamiherald.com)
Florida's 'Amendment 4' Would Give Voters Say on Overbuilding (theatlantic.com)
Case Shiller Index Overly Optimistic and Quite Misleading (boombustblog.com)
GMAC's Robo-Signers Draw Concerns About Faulty Process, Mistaken Foreclosures (propublica.org)
Banks Just Counterfeit Documents... No, Really! (market-ticker.org)
JPMorgan halts 50K foreclosures for possible flaws (sfgate.com)
Lost in the system that took the house (washingtonpost.com)
Government Must Continue To Subsidize Debt-Trap, Bankers Tell Lawmakers (bloomberg.com)
William K. Black on Banking Rackets. Too big to JAIL (dailybail.com)
Iceland ex-PM faces possible charges in meltdown (news.yahoo.com)
Tokyo Landlords Lose Century-Old 'Gift Money' as Rents Slump (bloomberg.com)
U.S. Dollar One Step Nearer to Crisis as Debt Level Climbs, Yu Says (bloomberg.com)
Money manager Bruce Fred Friedman arrested in France, faces fraud charges (latimes.com)
Open Dissent at the Fed: Charles Plosser Philly Fed Opposes QE2 (Mish)
Economic Outlook and the Current Tools of Monetary Policy (minneapolisfed.org)
Prominent Tiburon, CA realtor dead in apparent suicide (marinij.com)
 

Find cashflow-positive property easily. Free Trial


Wed Sep 29 2010
House Prices to Take Hit Next Year in Many Markets (nytimes.com)
Newport Coast land in foreclosure $6 million (mortgage.ocregister.com)
SF Bay Area Housing Graphs (patrick.net)
5 reasons why renting in California today makes sense over buying (doctorhousingbubble.com)
Hawaii residential subdivision heads for auction (staradvertiser.com)
Foreclosed houses headache for neighbors (but do they want prices low enough to sell?) (thegazette.com)
Case Says Housing Will Grow Slowly After Free-Fall (bloomberg.com)
Tax auctions look 'like government-sponsored loan-sharking' (bnd.com)
QE Engine Revs, Car Goes Nowhere (Mish)
Will quantitative easing 2 bail out commercial real estate market further? (mybudget360.com)
U.S. Household Income Falls for 2nd Straight Year (bloomberg.com)
Savers told to stop moaning and start spending (telegraph.co.uk)
China illegal immigration: Vietnamese pour into China seeking work (latimes.com)
Former bank rep gets the runaround from Capital One (latimes.com)
The Left Right Paradigm is Over: Its You vs. Corporations (ritholtz.com)
Patrick.net forum now has user search (patrick.net)
 

Thank You Cudick A. ($50) for your kind donation.

Find cashflow-positive property easily. Free Trial


Tue Sep 28 2010
House prices need to go down (cnbc.com)
Credit Scores May Hamper Housing Inflation (blogs.wsj.com)
Foreclosure Flaws May Slow House Price Fall, Delay Recovery (bloomberg.com)
Calif. houseowner optimism plummets (lansner.ocregister.com)
From $740,000 to $540,000 and still overpriced (doctorhousingbubble.com)
California is in trouble, more forecasters say (latimesblogs.latimes.com)
How Americans' Love Affair with Debt Has Grown (theatlantic.com)
Student loans have terms the mafia would love (studentloanjustice.org)
Housing Cash Flow and Rental Yields (deptofnumbers.com)
Walking away from a mortgage might make sense (mercurynews.com)
Housing less affordable in Ontario (yourhome.ca)
House prices fall across all of England (telegraph.co.uk)
Chinese Property Bust Like Cooking Crabs (bloomberg.com)
China: Proudly Demolishing Buildings Before Completed (zerohedge.com)
Raters Ignored Proof of Unsafe Loans (nytimes.com)
Where Are All the Prosecutions? (dealbook.blogs.nytimes.com)
What the Rich Don't Need (nytimes.com)
Hedge Fund Crackdown May Snare European Real Estate Investors (bloomberg.com)
Failed Banks Graphic (s.wsj.net)
Zombie Bank Song (dailybail.com)
 

Thank You Damon S. ($20) for your kind donation.

Find cashflow-positive property easily. Free Trial


Mon Sep 27 2010
Denver high-end housing market falling (denverpost.com)
New US House Sales Hold at Second-Lowest Level Ever (bloomberg.com)
August house sales rebound will be short lived (housingwire.com)
House sales on pace to finish year as bad as 2009 (finance.yahoo.com)
Housing Prediction: Bottom in 2014, Then Decade of Stagnation (Charles Hugh Smith)
Only one fix for housing crisis (hotair.com)
Walking away with less (washingtonpost.com)
LA housing bubble not dead yet (patrick.net)
Condo prices plummeted in Florida (gainesville.com)
Gung-ho' house repo agents change the locks even before foreclosure (miamiherald.com)
Tax credits leave housing inventory higher, not lower (newsok.com)
Australian housing bubble debate boils over (au.finance.yahoo.com)
To buy or not to buy? The Japanese Experience (japantimes.co.jp)
Trashing the dollar to save the economy (latimes.com)
What does it cost to produce an ounce of gold? (from 2009) (miningweekly.com)
Shopping Patterns Show When the Government Checks Come In (Mish)
Average property-price gap in US cities varies by more than $1M (guardian.co.uk)
Widening gap between rich and poor Americans (sfgate.com)
The Angry Rich (nytimes.com) 

The cost of buying in a flat market 

The best case scenario of prices while the banks dispose of their inventory is for prices to remain flat. Even if the banks can manage to engineer that miracle, there is still a cost to buyers who need to sell during the flat period: broker's commissions.

During the last period of flat to slowly declining prices in the early 90s, the most common lie realtors told their victims was that prices would rise 4% to 7% next year. The reason for this particular brand of bullshit is the need to convince a buyer that the commissions will be covered if they need to sell. What happens when prices don't go up?

You lose the amount of the resale commission.... 

 

Irvine Home Address ... 18 DELAWARE Irvine, CA 92620

Resale Home Price ... $799,000

Home Purchase Price … $805,000
Home Purchase Date .... 1/30/2008

Net Gain (Loss) .......... $(53,940)
Percent Change .......... -6.7%
Annual Appreciation … -0.3%

Cost of Ownership
-------------------------------------------------
$799,000 .......... Asking Price
$159,800 .......... 20% Down Conventional
4.74% ............... Mortgage Interest Rate
$639,200 .......... 30-Year Mortgage
$160,579 .......... Income Requirement

$3,331 .......... Monthly Mortgage Payment

$692 .......... Property Tax
$0 .......... Special Taxes and Levies (Mello Roos)
$67 .......... Homeowners Insurance
$75 .......... Homeowners Association Fees
============================================
$4,165 .......... Monthly Cash Outlays

-$804 .......... Tax Savings (% of Interest and Property Tax)
-$806 .......... Equity Hidden in Payment
$288 .......... Lost Income to Down Payment (net of taxes)
$100 .......... Maintenance and Replacement Reserves
============================================
$2,942 .......... Monthly Cost of Ownership

Cash Acquisition Demands
------------------------------------------------------------------------------
$7,990 .......... Furnishing and Move In @1%
$7,990 .......... Closing Costs @1%
$6,392 ............ Interest Points @1% of Loan
$159,800 .......... Down Payment
============================================
$182,172 .......... Total Cash Costs
$45,000 ............ Emergency Cash Reserves
============================================
$227,172 .......... Total Savings Needed

Property Details for 18 DELAWARE Irvine, CA 92620
------------------------------------------------------------------------------
Beds: 4
Baths: 3 baths
Home size: 2,800 sq ft
($285 / sq ft)
Lot Size: 4,419 sq ft
Year Built: 1985
Days on Market: 66
Listing Updated: 40431
MLS Number: P745761
Property Type: Single Family, Residential
Community: Northwood
Tract: Cs
------------------------------------------------------------------------------

This gorgeously upgraded and expanded Courtside home, full of natural sunlight, has over $100,000 in recent upgrades: dazzling travertine floors, white plantation shutters, crown molding, recessed lighting, a gorgeously remodeled kitchen with golden topaz granite, tumbled stone backsplash and top-of-the-line Bosch appliances, and three FULL elegantly remodeled baths with a spa tub in the master. For an older parent or visiting guest there is a convenient bedroom and full bath downstairs. So much livable space! In addition to the spacious downtairs family room with wet bar, there is an additional big crafts/study room leading to the backyard, another family room upstairs with wood flooring, and an upstairs landing off the bedrooms which is suitable as a T.V. room. Vaulted ceilings and skylights allow maximum vibrant sunlight into the home. This beauty is located next to a greenbelt/walking path, with additional side privacy and frontal privacy with no houses facing it across the street!


real estate home sales


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